Loan Prepayment Calculator
See exactly how much interest and time one prepayment saves.
Prepaying a loan reduces either the tenure or the EMI. Reducing tenure saves far more: on a ₹30 lakh, 20-year loan at 8.5%, a ₹5 lakh prepayment in year 3 cuts about 4 years and roughly ₹11 lakh of interest.
Your Inputs
Interest saved
Tenure cut by
5 yr 4 mo
New payoff in
14 yr 8 mo
How this works
Reduce tenure, not EMI
When you prepay, the lender asks whether to shorten the tenure or lower the EMI. Shortening the tenure keeps your cash outflow the same and kills the most expensive future interest. Lowering the EMI feels comfortable but typically saves less than half as much.
Prepayment charges
Floating-rate home loans to individuals carry no prepayment penalty by RBI rule. Personal loans, car loans and fixed-rate loans usually charge 2-5% of the outstanding, so calculate whether the interest saved exceeds that penalty before paying off early.
Frequently asked questions
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